Published June 8, 2026
High electricity bills continue to place considerable strain on many households; however, upcoming changes next month might provide some relief for consumers. Yet, although the introduction of reduced default prices and zero electricity rates can be helpful in reducing bills for some consumers, it might pay off to compare deals and see if there is something even better out there.
Reduced default electricity prices
On 1 July 2026, default electricity prices will change in various regions of Australia, determining the maximum price that can be charged by retailers to their customers understanding offers for the 2026–27 period. The DMO, which applies to NSW, SE QLD and SA and the VDO, applicable to Victoria, establish default electricity prices as part of safety measures that should help consumers avoid excessive energy prices.
For many customers, their new default charges will be lower than what they paid previously in 2025–26. In NSW, SE QLD and Victoria, all customers will face reduced costs. The effect of the price change in SA depends on the tariff type, with ToU customers experiencing a reduction in charges and flat-rate customers facing an increase of 1.4%.
DMO year-on-year change, 2026–27
| Region | Final Fixed (Flat) Rate % Change | Final Annual Fixed Impact | Final Time-of-Use (ToU) % Change | Final Annual ToU Impact |
|---|---|---|---|---|
| NSW | −3.4% to −5.0% | −$66 to −$137 | −3.7% to −7.7% | −$72 to −$211 |
| South East QLD | −7.2% | −$155 | −10.7% | −$229 |
| SA | +1.4% | +$33 | −1.1% | −$25 |
Free midday power
The eligible households can access midday power for free, starting in July.
Under the Solar Sharer Offer scheme, customers in DMO-regulated jurisdictions will receive three hours of free power per day via smart meters in households. The aim of the initiative is to increase the use of electricity when there is high output from solar generation plants, even if customers do not have solar energy generation capacity.
The free electricity window will operate:
11am – 2pm each day in NSW and SE QLD
12pm – 3pm each day in SA
Victoria has also introduced its own variant: the Midday Power Saver. This will provide free energy for the same period each day – but it won’t be available until 1 October 2026. Energy retailers will be obliged to provide the service; however, customers will have to register through their providers in order to qualify.
Who could benefit?
The DMO and Solar Sharer Offers are currently only available in NSW, SE QLD and SA. Victoria’s alternative to these plans is the VDO and the Midday Power Saver. Residents living in other Australian states and territories (WA, NT, Tasmania, ACT and regional QLD) do not participate in these schemes due to different pricing conditions.
For those living in eligible regions, the amount of saving depends upon several factors such as their particular plan and tariff and flexibility in adjusting their consumption of power. Beneficiaries include:
- Standing offer customers living in zones where default prices are declining, because they’ll likely see a reduction in their electricity bills from July when the changes occur without having to switch plans.
- Households receiving time-of-use tariffs, especially those who won’t use too much electricity during peak times.
- Customers with smart meters, which may be eligible to sign up for free midday electricity based on their locations.
- Households able to shift some electricity use to the middle of the day, like using a dishwasher, clothes dryer, pool pump, or heating water during the midday free period.
- EVs and battery owners who can recharge from the midday electricity free offer, reducing their need for other electricity at higher prices.
Is another electricity plan a better deal?
Yes, although reductions in default prices and a midday free electricity offer can potentially save money for certain households, this doesn’t necessarily mean that the standing offer or Solar Sharer-type deals are the most cost-effective.
Standing offers are safety nets for prices. Some customers will enjoy reduced costs from July onwards; however, there might be plans with even lower usage prices or solar buyback tariffs. For example, a South Australian household using 4,000kWh a year on a flat-rate standing offer would have an estimated annual default bill of $2,334 under the 2026–27 DMO. If that household found a market offer 10% below the reference price, that could mean a saving of around $233 a year.
The same goes for free midday power. For example, if a plan offers free electricity from 12pm to 3pm but charges higher rates in the evening, it may not deliver the best overall value for a household that uses most of its power after work.
Comparing electricity plans with Compare Today can help households understand whether they’re better off staying on a standing offer, opting into a free midday power deal or switching to another market offer. The cheapest option will depend on the full plan, including usage rates, supply charges, peak pricing and how much electricity can realistically be moved into the free window.
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